Approach to risk management
103-1 Explanation of the material topics and their boundaries for the topic Comprehensive risk management, including ESG riskExplanation of the material topics and their boundaries for the topic Comprehensive risk management, including ESG risk
103-2 Management approach to topics identified as material for the topic Comprehensive risk management, including ESG riskManagement approach to topics identified as material for the topic Comprehensive risk management, including ESG risk
103-3 Evaluation of the management approach to topics identified as material for the topic Comprehensive risk management, including ESG riskEvaluation of the management approach to topics identified as material for the topic Comprehensive risk management, including ESG risk
EC/TCFD Integrating climate risk and opportunity assessment into relevant investment, credit and insurance strategies.Integrating climate risk and opportunity assessment into relevant investment, credit and insurance strategies.
ESG: E - Environment Our approach to the environmentOur approach to the environment
Environmental and especially climate issues have a significant impact on the banking sector. Risks and opportunities arise from business activities, namely:
- selling financial derivatives
- advising on projects aimed at minimizing negative impact on the environment.
We manage social and environmental risks resulting from our own activities and those of our clients. The bank has identified social and environmental risks, including climate risks, related to financing undertakings of customers from selected sectors. The environmental and social components of risk management are used as assessment criteria for the Corporate and Investment Banking segment projects. The activities of clients in this segment may be subject to exclusions or restrictions, which we have defined in procedures for:
The scope of the risk analysis depends on several factors, including the industry and size of the client. For the largest clients, we perform the most extensive risk analysis.
The criteria we apply in providing financial products and/or services (including all forms of financing, insurance services, asset management services, equity investments and advisory services) to clients and projects related to our activities in these industries are described in our Social, Environmental and Climate Change Risk Management Policy.
We are transparent
We are committed to good practice and meeting regulatory requirements related to the disclosure of financial risks caused by climate change. We will report on the actions we are taking to identify, manage and monitor these risks.
Social and environmental risk management in Santander Bank Polska S.A.
- Since 2015, these matters have been regulated by our social and environmental policies.
- In 2019, we introduced environmental and social elements as evaluation criteria for corporate and investment banking segment projects. We implemented a procedure defining a mandatory social and environmental risk analysis process.
- In June 2019, we updated our social environmental policies, complementing them with a package of five environmental sector policies, including a renewed climate policy, and two new sector policies: energy and mining and metals.
- From 2020, all bank agreements with businesses that deal with coal include clauses prohibiting the use of allocated funds for coal mining and production purposes.
- In 2020, ESG indicators became part of the evaluation of new products and services in the customer-centric process.
- In 2021, as a result of the unification of three sector policies previously in place (Soft Commodities, Energy and Mining and Metals) we launched a unified „Social, Environmental and Climate Change Risk Management Policy”.
- In June 2021, we introduced an environmental and climate change risk assessment procedure for clients in the Corporate segment.
The implementation of the provisions of the social and environmental policies is supported by the Responsible Banking and Corporate Culture Committee.